Smooth out the wrinkles
By Phillip Mortimer
We are all getting old. Chances are someone in your family is already old. Old age brings with it new daunting physical, emotional and financial challenges.
At Lincolns we can help with the financial challenges that old age brings. We see and hear what our clients are having to do for themselves, their parents and their families to ensure growing old doesn’t become too great a financial burden.
Our experience shows a common transition as we age in dealing with the financial challenges.
First, there is downsizing. This is the process of moving from the big family home to a smaller, less burdensome place. A granny flat arrangement with a child may be the answer but the following questions need to be considered:
Do I need to pay rent? If so, can I get Centrelink rent assistance if I move into a granny flat?
How much do I need to pay to get a lifetime interest in a granny flat? (What is a lifetime interest?)
What if my child and their family want to move?
What happens if my child and their spouse decide they want to divorce?
What are the tax implications, if any?
Next, there are retirement villages. These come in various forms so the questions now become:
What are the different types of retirement village options?
Do I own, lease or rent a unit?
What are the purchasing costs?
What are the ongoing costs?
If I want to, or have to, leave what are the exiting costs?
Finally when our bodies and minds don’t behave like we want them to do then the need for aged care arises. This may be in the form of home care or moving into residential care. So the issues you now face are:
How do I access government assistance for aged care?
What is an Advanced Health Directive?
How will my affairs be taken care of if I become incapable?
How do I pay for care in a residential aged care facility?
Would I need to sell my house?
What is a Refundable Accommodation Bond?
What are the ongoing fees and can I get Centrelink assistance?
Do I need to change my will if going into residential aged care facility?
All these concerns are shared by the family, not just those in their declining years. And sometimes decisions will need to be made that may not satisfy all but they do ensure the best outcome is arrived at for the elderly family member.
Lincolns is fortunate to have an ‘aging expert’ to help you navigate the labyrinth of decisions that must be made. Phillip Mortimer has taken up the challenge to master the financial planning required to grow old. He can walk you and the family through the numbers that can sometimes boggle and confuse. A simple explanation is given so you can compare ‘apples with apples’ of the different financial options of each care provider. So if any of these questions mentioned are being asked by you and your family please call Phil to help you smooth out the wrinkles that old age brings.
Assets for care
By Michelle Salisbury
Ever thought of what you will do if your partner passes first and you are alone. Maybe sell the family home and move in with one of your kids and their kids? Pay their mortgage off, look after the grand kids; you get looked after in your old age surrounded by family….
Sounds like a dream. This is what Assets for Care is – you sell your Assets in return for care from your family.
Unfortunately it could go pear shaped quickly and you could be left out in the cold literally with no roof over your head and no money in the bank. And because you gifted the money, you won’t be eligible for Centrelink either – then what?
Your situation would then be just another case of Elder Abuse. Elder Abuse you say!?! Is that even a thing? Unfortunately yes and it even has an awareness day dedicated to it - 15th June each year.
There are of course other forms of Elder Abuse not just ‘Assets for Care’.
It could include other forms of Abuse including:
denying access to bank accounts
bully, fear and pressure tactics used to gain control of assets
physical abuse
valuables disappear
overcharging or not delivering
predatory lending
scams
signature forgery
and the list goes on
These acts could be undertaken by close family, carer’s, prominent business persons, people in the community etc.
There is a case recently of a farmer from Hervey Bay in QLD who was a 3rd generation farmer with Alzheimer’s who lost $8.7 million to a music streaming service. He was talked into investing his money by the CEO of that company.
Before you enter into any major decision, seek advice from a professional. We can assist you in many areas to prevent Elder Abuse occurring by putting structures in place and assisting you with plans for your future.
The instant asset write-off just got better
By Amy Sims
Small businesses will get an extra tax break following the recent legislative changes to extend the instant asset write-off scheme to 30 June 2020 for assets purchased under a certain value.
Small businesses will be able to immediately deduct assets costing less than $25,000 instead of claiming depreciation over a number of years. The new increased threshold of $25,000 (instead of $20,000) applies from 29 January 2019 .
Although the BIG news…
From Tuesday 2 April 2019 (Budget night) businesses can now claim the instant asset write-off for assets costing up to $30,000. Better still, businesses with up to $50 million turnover can now claim the instant asset write-off from April.
